Meta Drops 9% on Weak Revenue Forecast and AI Spending Worry as Microsoft Rises 9%
Meta shares fell nearly 9% in extended trading after a third-quarter revenue forecast missed Wall Street estimates, highlighting growing investor skepticism over the company’s artificial intelligence spending. The decline came as Microsoft shares rose more than 9%, as traders distributed valuations across major technology names following differing market reactions to their earnings.
The pullback followed a revision by Evercore, which cut its price target on Meta to $820 from $930 and removed the stock from its top-pick list while maintaining an outperform rating. Analysts at the firm cited rising AI costs and limited visibility on future capital expenditure, even though Meta reported a second-quarter profit that slightly beat expectations despite a 91% drop in free cash flow.
From the sources (7 posts)
@firstsquawkMeta Stock Down 7.4% on Tradegate as Free Cash Flow Declines 91%
@alojohMeta is down 7% on Q2 2026 earnings missing analyst estimates. We predicted in April 2026 that analysts estimates were too optimistic. This is our Meta @meta deep dive for serious investors 👇
@cnbcMeta tanks nearly 9%, Microsoft jumps 8% as the AI trade splits Big Tech
@deitaone$META - EVERCORE REMOVES META FROM TOP PICK LIST Evercore ISI removed Meta from its TAP Outperform List but maintained an Outperform rating, cutting its price target to $820 from $930. The firm cited rising AI spending, limited visibilit
@cnbcMicrosoft shares jumped in premarket trading while Meta tanked as investors gave differing verdicts on the two tech giants’ earnings. Shares of Microsoft were last 9% higher while Meta was down 9%. Read more: https
@stockmktnewzMicrosoft $MSFT is up by more than 9% in pre market trading 🟢 Meta Platforms $META stock is down by more than 8% in pre market trading
@cointelegraph🚨 LATEST: Meta gives a lackluster Q3 revenue forecast below Wall Street's estimate, deepening investor concerns over CEO Mark Zuckerberg's massive AI spending. Its shares are down 4%.